We survey and assess the literature on the positive and negative effects of ethnic diversity on economic policies and outcomes. Our focus is on communities of different size and organizational structure, such as countries, cities in developed countries, villages and groups in developing countries. We also consider the endogenous formation of political jurisdictions and we highlight several open issues in need of further research, in particular the endogenous formation of ethnic identity and the measurement of ethnic diversity.
Ethnic Diversity and Economic Performance
LA FERRARA, ELIANA
2005
Abstract
We survey and assess the literature on the positive and negative effects of ethnic diversity on economic policies and outcomes. Our focus is on communities of different size and organizational structure, such as countries, cities in developed countries, villages and groups in developing countries. We also consider the endogenous formation of political jurisdictions and we highlight several open issues in need of further research, in particular the endogenous formation of ethnic identity and the measurement of ethnic diversity.
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